CFTC ACCEPTS SETTLEMENT OFFERS OF CURTIS McNAIR ARNOLD AND LONDON
FINANCIAL, INC. IN CASE INVOLVING THE FRAUDULENT SOLICITATION OF
CLIENTS

Arnold Is Ordered To Pay A $100,000 Civil Monetary Penalty, Among
Other Sanctions

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
today the issuance of an order
accepting offers of settlement from Curtis McNair Arnold and
London Financial, Inc.(LFI), both of Jupiter, Florida,
in connection with a complaint filed by the CFTC on June 30, 1997 (see CFTC News Release
4039-97, July 31, 1997). The CFTC order finds that Arnold and LFI
fraudulently solicited clients to purchase a commodity futures trading
system and other advisory services. Arnold and LFI consented to the entry
of the order without admitting or denying the findings of the order or the
allegations of the complaint.

Specifically, the CFTC order finds that since at least 1994, Arnold and
LFI, while acting as commodity trading advisors (CTAs), committed fraud in
the course of offering and selling to the public a commodity futures
trading system called the Pattern Probability Strategy (PPS) and
various advisory services offering the trading signals generated by PPS.
The order also finds that Arnold and LFI committed fraud since at least
1996, in connection with the offer and sale of a publication entitled Systems USA, distributed by mail and over the Internet, which,
purported to track the performance of various trading systems authored by
Arnold and other vendors, and which offered and sold these systems and
services related to these systems.

According to the order, in direct-mail promotional literature
distributed through two publishers in 1994 and 1995 and directly by Arnold
in 1995, Arnold and LFI made material misrepresentations concerning the
profits and rates of return generated by Arnold’s trading pursuant to
PPS and failed to disclose that many of the representations concerning the
performance of PPS were based on hypothetical, rather than actual, trading
of PPS. As the order further finds, Arnold and LFI's direct promotion of
PPS and the Systems USA publication further failed to provide
the warning regarding the limitations of hypothetical trading required by
section 4.41(b) of the CFTC's regulations.

The CFTC order finds that Arnold and LFI violated sections 4b(a)(i) and
4o(1) of the Commodity Exchange Act and sections 4.41(a) and (b) of
the regulations and:

-- requires Arnold to pay a $100,000 civil monetary penalty within 10
days of the entry of the order;

-- directs them to cease and desist from further violations as
charged;

-- prohibits them from trading on or subject to the rules of any
contract market for a period of three years; and,

-- requires them to comply with certain undertakings, including never
applying for registration or claiming exemption from registration in any
capacity.